Imperial Tobacco Canada has announced it is pulling out of its vape business in Prince Edward Island due to the proliferation of illegal markets and complex tax policies. The company is calling on governments across Canada to take steps to combat the illegal vape market.
Key points:
- Imperial Tobacco Canada (ITCAN) announced its withdrawal from Prince Edward Island due to the proliferation of illegal markets and complex tax policies.
- ITCAN warns that other provinces, such as Quebec, face a similar crisis.
- ITCAN is calling on governments across Canada to crack down on the illegal vape market before it’s too late.
Imperial Tobacco Canada pulls out of Prince Edward Island
According to Newswire on February 27, Imperial Tobacco Canada (ITCAN) announced that it will withdraw its vape products from the province of Prince Edward Island due to the province’s failure to effectively enforce regulatory measures, leading to the proliferation of illegal markets.
Eric Gagnon, vice president of ITCAN, noted that the company is committed to a “smoke-free” world, and legal vape products are an important alternative to reducing the harm of tobacco. However, the current vape market in Prince Edward Island is controlled by illegal operators, and complex tax policies further discourage legitimate businesses, which has prompted ITCAN to make the difficult decision to withdraw, and ITCAN vape products in the province will be discontinued after March 1, 2025.
Calls on government to crack down on illegal e-cigarette market
According to Cannon, poor enforcement in Prince Edward Island has fueled the illegal trade, with unregulated products easily entering the market, posing a potential hazard to young people in particular. The lack of enforcement of regulatory measures has emboldened illegal operators, and fines are only part of the cost of doing business.
Gagnon also warned the province of Quebec that it could face the same fate if it did not act quickly. Since Quebec’s flavored vape ban came into effect in October 2023, the influx of illegal products has been severe. Gagnon questioned whether Quebec Premier Francois Legault wants to see a legal, regulated, and taxed market that only allows responsible companies to operate.
According to an October 2024 survey commissioned by ITCAN and conducted by Leger Marketing, 61 percent of respondents have purchased flavored vapes, 33 percent of which purchased them online by circumventing the ban on online sales.
In addition, a report by the Department of Health and Social Services (MSSS) revealed that non-compliance is widespread, with only 38 percent (150) of vape shops being inspected. More than 90 percent of the stores inspected did not comply, but only 28 retailers received fines. Fines can be as low as $2,500 for first-time offenders and as low as $5,000 for repeat offenders.
Canon is calling on governments across Canada to crack down on the illegal vape market before it’s too late.
